HB Estate Developers Ltd. (BSE:532334) agreed to acquire investment division 2 from HB Stockholdings Limited (BSE:532216) for INR 55.4 million in stock on February 9, 2016. Under the terms, 24 equity shares of HB Estate Developers Ltd will be issued for every 100 shares of HB Stockholdings Limited. In related deals, HB Portfolio Limited will acquire investment division 1 from HB Stockholdings and HB Estate Developers will acquire investment division 3 from HB Portfolio Ltd. Investment division 2 had total assets of INR 360.4 million and net assets of INR 359.9 million as of March 31, 2015. The transaction has been approved by the Board of HB Estate Developers Ltd. on February 11, 2016 and HB Stockholdings on February 11, 2016.

The transaction is subject to the approval of Board of Directors of respective companies, approval from High Court(s) of respective Judicature and such other statutory approvals that may be required. Shareholders and creditors of HB Portfolio and HB Stockholdings will held their meeting for the approval on December 3, 2016. As of December 13, 2016 shareholders of HB Estate Developers Ltd. approved the transaction. The transaction was approved by shareholders of HB Stockholdings Limited. On June 5, 2017, the court decided that the hearing will be held on July 20, 2017. The transaction was sanctioned by National Company Law Tribunal on December 22, 2017. Deal is expected to close on March 12, 2018. D&A Financial Services (P) Limited acted as financial advisor and SS Kothari Mehta & Co. acted as accountant for HB Estate Developers Ltd. and HB Stockholdings.